U.S. AI in Oncology Market Size, Share, Opportunities, And Trends By Component Type (Software Solutions, Hardware, Services), By Cancer Type (Breast Cancer, Lung Cancer, Prostate Cancer, Colorectal Cancer, Brain Tumor, Others), By Treatment Type (Chemotherapy, Radiotherapy, Immunotherapy, Others) - Forecasts From 2025 To 2030

U.S. AI in Oncology Market Size:

The US AI in the oncology market is anticipated to grow considerably during the forecast period.

U.S. AI in Oncology Market Highlights:

• AI enhances early cancer detection through advanced imaging analysis, improving diagnostic accuracy.
• Precision medicine advances with AI-driven genomic profiling, tailoring treatments to patients.
• AI streamlines drug discovery, identifying novel targets and accelerating oncology research.
• Clinical trial recruitment improves with AI matching patients to suitable studies.

US AI in Oncology Market Introduction:

The integration of artificial intelligence (AI) into oncology represents a transformative shift in the United States’ healthcare landscape, redefining how cancer is diagnosed, treated, and managed. As cancer remains a leading cause of mortality in the US, with approximately 2 million new cases and over 611,720 deaths reported in 2024 by the American Cancer Society, the demand for innovative solutions to improve patient outcomes is urgent. AI technologies, including machine learning (ML), deep learning (DL), and natural language processing (NLP), are increasingly pivotal in addressing this challenge. By leveraging vast datasets from electronic health records (EHRs), medical imaging, genomic profiling, and clinical trials, AI is enhancing precision, efficiency, and personalization in oncology. The US, with its robust healthcare infrastructure, significant investment in technology, and supportive regulatory environment, is at the forefront of this revolution. This introduction explores the current state of the US AI in the oncology market, its key applications, major drivers, and critical restraints, tailored for industry experts seeking to understand this dynamic field.

AI’s applications in oncology span the entire continuum of cancer care, from early detection to treatment planning and drug discovery. In diagnostics, AI-powered algorithms analyze medical images, such as mammograms, CT scans, and MRIs, to detect tumors with high accuracy, often surpassing human performance. For instance, in October 2024, researchers at Stanford University reported an AI model achieving 92% accuracy in identifying lung cancer from CT scans, compared to the majority of experienced radiologists. In pathology, AI tools assist in analyzing tissue samples to identify malignancy and predict tumor behavior, as demonstrated by the FDA-approved Paige Prostate, which enhances prostate cancer detection from biopsy images.

Beyond diagnostics, AI is revolutionizing precision medicine by analyzing genomic data to identify biomarkers and tailor treatments to individual patients. In 2024, the National Cancer Institute (NCI) highlighted AI-driven models that predict patient responses to immunotherapy by integrating genomic and clinical data, improving response rates in clinical trials. AI also streamlines drug discovery by simulating drug interactions and identifying promising candidates, reducing development timelines. A notable example is the collaboration between IBM and Memorial Sloan Kettering, which used AI to identify novel drug targets for pancreatic cancer.

Clinical decision support is another critical application where AI integrates patient data with clinical guidelines to recommend personalized treatment plans. Additionally, AI optimizes clinical trial recruitment by matching patients to trials based on their genetic and clinical profiles, as seen in Tempus’ platform, which in 2024 facilitated the enrollment of more patients in oncology trials compared to traditional methods. These advancements underscore AI’s potential to enhance efficiency, accuracy, and patient outcomes across oncology.

US AI in Oncology Market Drivers:

• Rising Cancer Burden and Demand for Early Detection

The increasing incidence of cancer in the US is a primary driver for AI adoption in oncology. With approximately 2 million new cancer cases diagnosed in 2024, as reported by the American Cancer Society, healthcare systems face immense pressure to enhance early detection and treatment efficacy. AI addresses this issue by enabling faster and more accurate diagnoses, particularly through advanced imaging analysis. For example, AI-powered tools like those developed by Stanford University in 2024 have demonstrated superior performance in detecting lung cancer from CT scans, allowing for earlier interventions that can reduce mortality rates. The ability of AI to process large datasets quickly and identify subtle patterns in medical images is critical for managing the growing cancer burden, driving its integration into clinical workflows to improve patient outcomes.

• Advancements in Computational Power and Data Availability

The rapid evolution of computational technologies and the availability of large-scale healthcare data are fueling AI innovation in oncology. Advances in graphical processing units (GPUs), cloud computing, and machine learning algorithms have enabled the development of sophisticated AI models capable of analyzing multimodal data, including imaging, genomics, and electronic health records (EHRs). A 2024 collaboration between IBM and Memorial Sloan Kettering leveraged these advancements to accelerate pancreatic cancer drug discovery, demonstrating the power of AI in processing complex datasets. Additionally, the digitization of oncology data, such as radiology images and genomic profiles, has created vast datasets for training AI models. This digital transformation, coupled with enhanced computational capabilities, enables real-time, data-driven insights, making AI indispensable for precision oncology and driving its market growth.

• Supportive Regulatory Frameworks and Funding

The US regulatory environment and significant investments are accelerating AI adoption in oncology. The Food and Drug Administration (FDA) has streamlined approvals for AI-based medical devices, with over 50 oncology-related tools cleared in 2024, including Ibex Medical Analytics’ Galen platform for cancer diagnostics. This regulatory support fosters innovation and builds confidence among healthcare providers. Furthermore, substantial funding from both public and private sectors is propelling AI development. The Cancer AI Alliance (CAIA), launched in October 2024 with $40 million in funding from leading cancer centers and tech giants like AWS and NVIDIA, exemplifies this trend by supporting collaborative research and data-sharing initiatives. These efforts enhance the development and clinical integration of AI tools, positioning the US as a global leader in AI-driven oncology solutions.

U.S. AI in Oncology Market Restraints:

• Data Privacy and Security Concerns

Data privacy and security remain significant barriers to AI adoption in oncology, given the sensitive nature of patient data. AI systems require access to vast amounts of personal health information, raising concerns about cybersecurity risks and compliance with regulations like the Health Insurance Portability and Accountability Act (HIPAA). A high-profile ransomware attack on a major US hospital system in 2024 exposed vulnerabilities in healthcare data management, highlighting the risks of integrating AI systems that rely on large datasets. Additionally, ethical concerns about AI-driven decision-making and potential data misuse complicate adoption. Ensuring robust data protection measures and transparent AI governance is critical to overcoming this restraint, particularly as patient trust is paramount in healthcare.

• Shortage of Trained Professionals

The lack of a skilled workforce proficient in both oncology and AI technologies is a significant restraint. Developing and implementing AI solutions requires specialized expertise, yet there is a notable shortage of data scientists and clinicians trained in AI applications. A 2024 report by the American Medical Association highlighted a gap in trained personnel for AI integration in healthcare, which slows the deployment of AI tools in oncology settings. This shortage is particularly challenging in smaller healthcare facilities, where resources for training and hiring are limited. Bridging this gap requires investment in interdisciplinary education and training programs to equip professionals with the skills needed to leverage AI effectively in cancer care.

US AI in Oncology Market Segmentation Analysis:

• Software solutions are expected to lead the market growth

Software solutions lead the component type segment due to their pivotal role in integrating AI into oncology workflows, offering advanced analytics, diagnostic accuracy, and treatment planning capabilities. These solutions encompass diagnostic software, treatment planning platforms, patient management systems, and data analytics tools, leveraging ML and DL to process complex datasets like medical imaging, genomic profiles, and EHRs. In 2024, the FDA approved over 50 AI-based medical devices, many of which are software solutions, such as Paige’s AI-driven pathology platform for prostate cancer detection, highlighting their growing adoption. Software solutions are favored for their scalability, cost-effectiveness, and ability to integrate with existing healthcare systems, enabling real-time insights. For instance, in April 2025, iCAD’s integration of its ProFound AI Breast Health Suite into Microsoft’s Precision Imaging Network enhanced mammography analysis, improving cancer detection rates and reducing false positives. These advancements underscore software solutions’ dominance in driving precision and efficiency in oncology care.

• The rising prevalence of Breast Cancer is boosting market growth

Breast cancer is the leading cancer type segment in the US AI in oncology market, driven by its high prevalence and the critical need for early detection and personalized treatment. According to the Centers for Disease Control and Prevention (CDC), approximately 240,000 women and 2,100 men are diagnosed with breast cancer annually in the US, making it the second leading cause of cancer-related deaths among women. AI technologies, particularly in imaging analysis, have revolutionized breast cancer care by enhancing mammogram interpretation and identifying abnormalities with high accuracy. For example, Google’s DeepMind reported in 2024 that its AlphaCode model achieved high accuracy in predicting breast cancer recurrence by analyzing multimodal data, surpassing traditional models. Additionally, AI-driven predictive models analyze genomic and clinical data to tailor treatment plans, as seen in the National Cancer Institute’s 2024 trials, which improved immunotherapy response rate for breast cancer patients. The focus on breast cancer reflects its public health significance and AI’s transformative impact on its management.

• Chemotherapy is expected to be the most dominant type of treatment

Chemotherapy dominates the treatment type segment due to its widespread use as a cornerstone of cancer treatment and AI’s ability to optimize its efficacy and minimize side effects. AI enhances chemotherapy by personalizing dosing regimens and predicting patient responses through the integration of ML algorithms and predictive analytics. The American Cancer Society notes that chemotherapy is used in approximately 60% of Stage 4 bladder cancer cases, a trend applicable to other cancers, highlighting its prevalence. In 2024, the National University of Singapore’s CURATE.AI platform, adopted in US clinical trials, demonstrated AI’s ability to optimize chemotherapy dosing, reducing adverse effects while maintaining efficacy. By analyzing patient data, such as tumor characteristics and medical history, AI creates digital profiles to customize treatment, improving outcomes. This capability, combined with chemotherapy’s established role in oncology, drives its dominance in the AI market, as healthcare providers increasingly rely on AI to enhance treatment precision and patient care.

US AI in Oncology Market Key Developments:

• June 2025: Viz.ai launched a strategic collaboration with Novartis to develop AI-powered workflows focused on breast and prostate cancer diagnostics and treatment. This alliance aims to enhance timely diagnosis and precision care by integrating AI into clinical workflows, leveraging Viz.ai’s expertise in AI-driven medical imaging analysis. The initiative targets improving screening access and reducing diagnostic delays, particularly for underserved regions, to address the growing cancer burden.
• April 2025: iCAD integrated its ProFound AI Breast Health Suite into Microsoft’s Precision Imaging Network, marking a significant advancement in breast cancer diagnostics. This software solution enhances mammography analysis by improving detection rates and reducing false positives, leveraging AI to analyze imaging data with high accuracy.
• November 2024: PathAI unveiled PathExplore Fibrosis, an AI-powered tool designed to quantify collagen, fibrosis, and fiber characteristics directly from whole-slide pathology images. This launch expands PathAI’s capabilities in oncology by providing precise tissue analysis for multiple cancer types, including breast and lung cancers.
• January 2024: PathAI expanded its PathExplore platform to include six additional oncology indications: ovarian, bladder, liver, small cell lung, lymphoma, and head & neck cancers. This AI-driven pathology platform uses machine learning to analyze histopathological images, improving diagnostic accuracy and supporting personalized treatment strategies.

Segmentation

• By Component Type
  • Software Solutions
  • Hardware
  • Services
• By Cancer Type
  • Breast Cancer
  • Lung Cancer
  • Prostate Cancer
  • Colorectal Cancer
  • Brain Tumor
  • Others
• By Treatment Type
  • Chemotherapy
  • Radiotherapy
  • Immunotherapy
  • Others

iCAD, Inc.

IBM Corporation

Siemens Healthineers AG

NVIDIA Corporation

GE HealthCare Technologies Inc.

PathAI, Inc.

Tempus Labs, Inc.

Paige AI, Inc.

Ibex Medical Analytics Ltd.

Imagene AI

ConcertAI, Inc.

Azra AI